MarketsandMarkets forecasts the global Internet of Things (IoT) Cloud Platform Market size to grow from USD 6.4 billion in 2020 to USD 11.5 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 12.6% during the forecast period. Major factors expected to drive the growth of the IoT cloud platform market include the proliferation of IoT-enabled devices, need to increase operational efficiency, rapidly decreasing costs of IoT-based sensors connectivity hardware, and emergence of Internet Protocol version 6 (IPv6).

Based on offering, the platform segment to hold a higher market share during the forecast period

The IoT cloud platform market is a platform-driven market. The platform plays a crucial role in handling all the IoT and cloud operations related activities that include collecting data from IoT-enabled devices to the storage and analysis of collected data for gaining real-time insights. The rising number IoT devices in various application areas is one of the major factors driving the growth of platform segment in the IoT cloud platform market.

Based on organization size, the large enterprises segment to hold a higher market share during the forecast period

Large enterprises possess strong budget capabilities and are significantly investing in the adoption of the IoT cloud platform and associated services to manage their subscription base efficiently. The growth of the large enterprises segment is mainly governed by the increasing number of installed IoT devices across large enterprises. Large enterprises from smart city, retail, healthcare, manufacturing, and transportation verticals are widely adopting IoT cloud platforms to monitor and optimize their IoT business processes.

Based on application area, the connected healthcare segment to grow at the highest growth rate during the forecast period

Application of IoT cloud platform in the connected healthcare segment has widened, due to the increasing use of embedded sensors, availability of fast cellular networks, and rising adoption of wireless devices. Communication between sensors and devices enables healthcare organizations to streamline their clinical operations, manage workflows, and aid in real-time patient care, even from remote locations. Hence, healthcare organizations are focusing on implementing robust applications and connected technologies. Some of the major applications of IoT in connected healthcare area are remote patient monitoring, healthcare workflow management, medication management, and medical asset tracking.

Amazon Web Services (AWS) (US) is one of the prominent players in providing the IoT cloud platform across the globe. The company provides a very high-tech and competitive range of IoT products and associated services. The company offers AWS IoT solutions, Device Software, Connectivity and Control services, and Analytics services in IoT cloud platform market. The company has a huge AWS IoT Partner Community, which includes global and regional system integrators, Independent Software Vendor (ISV) partners, connectivity partners, Original Equipment Manufacturer (OEM) partners, and silicon partners; this community supports AWS to enhance its market position in IoT cloud area. AWS focuses on its global presence through setting up offices across regions and availability zones in various locations in the globe to bring data and workloads closer to the end users. For instance, in December 2019, the company announced to open AWS Local Zone in Los Angeles, US. AWS has also adopted the inorganic growth opportunities, such as partnerships, to maintain its leading position in the IoT cloud market. For instance, in January 2020, the company partnered with BlackBerry, to develop a safe, secure and intelligent connected vehicle software platform for in-vehicle applications.

Microsoft (US) is another prominent player in the IoT cloud platform market. Microsoft offers Azure IoT that comprises various IoT solutions, such as Azure IoT Central, Azure IoT Solution Accelerators, Azure IoT Edge, Azure IoT Hub, Azure Digital Twins, Azure Sphere, Azure Time Series Insights, and Azure Maps. Microsoft invests a substantial part of its annual revenue in R&D for enhancing and upgrading its offerings in the market. For instance, the company invested USD 16.9 billion in R&D activities, in the financial year of 2019. The company focuses on offering technically advanced, cloud supported IoT solutions to its customers through new product launches and product enhancements. For instance, in February 2020, Azure Security Center for IoT extended the support for Azure Real-Time Operating System (RTOS). Microsoft focuses on offering tailored IoT solutions to customers with the help of the acquisition strategy to become an exclusive vendor in the market. For instance, in April 2019, Microsoft acquired Express Logic, aiming to make Express Logic’s ThreadX RTOS available as an option for real-time processing requirements on an Azure Sphere device.